On December 15, a Company Enters into a Foreign Currency

question 34

Essay

On December 15, a company enters into a foreign currency forward to buy €100,000 at C$1.60 per euro in 30 days. The exchange rate on the day of the company's year-end of December 31 was C$1.55: €l.
Required:
Record the journal entries related to this forward contract.

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Definitions:

Demographic Transition Model

The Demographic Transition Model is a theoretical model that describes the transition from high birth and death rates to low birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Birthrate

The number of live births per thousand people in a population per year.

Death Rate

The number of deaths each year per 1000 people.

Agricultural Technology

The application of technology and scientific methods to agriculture, aiming to increase efficiency, productivity, and sustainability.